Indian Enterprise Software Products-On Accelerated Growth Path

by Ruchika Sharma - Deputy Manager-Research, NASSCOM

Established in 1988, NASSCOM is a global trade body with over 1500 members across the globe. Headquartered in New Delhi, NASSCOM facilitates business and trade in software and services and encourages advancement of research in software technology.

Global enterprise applications market continues to grow rapidly with small and medium size businesses now adopting enterprise-class software along with large enterprises upgrading solutions for greater integration of business processes.

While enterprise suites from leading software vendors such as Oracle, SAP and Microsoft continue to dominate the large enterprise segment, many emerging players across the globe have successfully identified white spaces to address business needs, thereby, offering a significant addressable market opportunity.

Indian software products market is accelerating rapidly with presence of over ~300 Indian software products in this growing segment. It is incredible to see how well-designed software products with core functionalities and the right technology from vendors like Tally, Ramco, Employwise, Talisma, Freshdesk, Ramyam, Greytip and others are transforming the businesses, e.g., accounting has become so easy with just one such product, TALLY.

In continuation to the earlier initiatives, NASSCOM, in partnership with Frost & Sullivan, has last year concluded another series of the initiative “Product Excellence Matrix – Enterprise Software”. Enterprise applications is the third in the horizontal segment category series post the successful completion of analytics and mobility segments. The in-depth survey analysis reveals some interesting highlights as outlined below:

  • ~250 products nominated and ~85 per cent of the total nominations were considered under the enterprise software assessment; based on the Frost & Sullivan assessment criteria
  • Customer management centric products (29 per cent) followed by ERP (23 per cent) exhibited the highest focus areas within the Enterprise Applications. The products ranged from integrated CRM suites to market and sales functional products
  • The other categories included Human capital management, Supply chain management, Business process and productivity management and Unified communication and collaboration
  • Over 70 per cent of the firms incorporated post 2010 indicating the rapid increase in entrepreneurship and focus on the segment
  • Almost one-third of the firms are already scaled up with employee base of > 100

An exhaustive assessment was undertaken and products were benchmarked separately across 4 grids – ERP Grid, CRM Grid, HCM Grid and SCM Grid. Growing interest amongst CMOs, CIOs and CEOs on ways to leverage social media, mobility and analytics to strengthen customer offerings and support sales teams has directly translated to CRM and CEM segments witnessing heightened focus and considerable success for Indian product vendors.

Although, very few Indian players are offering cross-vertical ERP solutions, a large number of verticalised integrated customer management offerings have been launched in the last few years. HCM, SCM offerings are characterized more by standalone point solutions developed to address niche end-user business concerns and challenges.

The report also features products across two more categories – Business process and productivity management (including a broad spectrum of functional software e.g., project management, planning tools, compliance, management software, productivity management, facilities management as well as products focused on integrated process management) along with Unified communication and collaboration.